I am trying to check my work on a project I have due. The documents are attached but the sections in question are #3 - Cost classification, #7 - Break Even Analysis and #8- Contribution Margin.

Cost Classification Variable Packaging Supplies ($3000) Product Supplies ($9000) Shipping Fees ($1000/mo.) Travel Expenses ($1200) Utilities ($105/mo.) Total Variable Costs= $14,305 Fixed Advertising Fees ($4000) Labor ($400/mo.) Office Supplies ($800) Phone/Internet Service ($115/mo.) Conference Exhibitor Fee ($3000) Total Fixed Costs = $8,315 MGMT 640 Team Project Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee's are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don't have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them. The Project: There are several financial analysis tasks involved with this project, which are outlined below (#1-8). Once you have worked through each task, you will need to produce a PowerPoint presentation to introduce and highlight your findings. Your PowerPoint presentation should include a title slide, an executive summary slide(s), subsequent slides that illustrate your findings, any additional recommendations that you would like to make, and a conclusion slide. The PowerPoint presentation should be approximately 15-25 slides in length. Include notes in the presentation as needed. You will also need to create a written executive summary (one page in length). Your final submission will include the PowerPoint presentation, the executive summary, and an Excel file with relevant calculations. The specific financial analysis tasks and related information are listed below (#1-8). Working in a Group: Your instructor will assign you into a group during Week 4. This allows time for students to drop/add during the first 3 weeks of the course. Starting early will allow for adequate time to develop timelines and assign responsibilities as a team. Group Projects provide the opportunity to work with your classmates and are a necessary part of the Financial Management workforce. Please use this occasion to demonstrate your strengths and allow group members to do the same. Critically thinking and creativity are vital to your success in the work place and this project is a great chance to build those talents. It is a group project so you will need to coordinate with various members of your group on how to progress with the project. Often students are reluctant to work in groups, but as you have experienced in the workplace, working in a group will not be an option. You will learn together and find out more about flexibility and sharing of responsibilities with the project. All team members should contribute to the financial analysis tasks. A timeline for completion of these tasks should be determined by the team. The completed PowerPoint presentation should be cohesive and professional in appearance. You may decide to split the Executive Summary and PowerPoint presentations between all members, or you may decide to have 2 students focus on the Executive Summary Word document and content for the associated PowerPoint slide while the rest of the team members focus on the PowerPoint presentation. The decision should be based on what works best for your team. Also determine a timeline for this portion of the assignment. Consider how editing will be done within your team. Use the grading rubric to help guide your work! MGMT 640 Team Project 1. Financial Statements: Develop an Income Statement, Cash Flow Statement, and Balance Sheet based on the provided data for year 20XX (the previous year) that follows. Explain the purpose of each financial statement. a. Income Statement Data for 20XX: Gross Sales = $33,291 Coupons and Discounts = $549 Cost of Goods = $10,276 Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves) advertising fees =$2000 bank fees = $120 phone/internet = $1200 shipping = $1380 utilities = $900 office supplies = $785 Income tax = 26 % b. Cash Flow Statement Data for 20XX: Cash in bank = $21,120 Depreciation = $800 Proceeds from disposal of investment = $3,000 Capital Expenditure = -$1,600 Repayment of Bank Loan = -$5,000 Interest Expense Associated with Bank Loan = -$345 Consider any data relevant from the income statement. c. Balance Sheet Data for 20XX: Cash = $21,120 Accounts Receivable = $496 Accounts Payable = $200 Inventory = $10,507 Accumulated Depreciation = -$1,000 Common Stock = $0 2. Financial Ratios: Calculate the following financial ratios and explain the meaning of the results. a. Net Profit Margin b. Quick Ratio c. Debt-to-Equity Ratio 3. Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures. a. Advertising Fees = $4,000 b. Labor = $400/month One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month. c. Packaging Supplies = $3,000 MGMT 640 Team Project 4. 5. 6. 7. 8. d. Office Supplies = $800 e. Phone and Internet Service = $115/month f. Product Supplies = $9,000 g. Shipping Fees = $1,000/month h. Conference Exhibitor Fee = $3,000 i. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200 j. Utilities for the Home Workshop = $105/month Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42,000. It is expected that the new piece of equipment will lead to cash flows of $17,000, $29,000, and $40,000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings. Budget Preparation: The Lees believe that there production could quadruple in one month after being on Shark Tank. They want to be prepared for this. Based on the monthly budget calculated above, create a new monthly budget for quadrupled production. Assume that 70 units were produced in the first budget and 280 units will be produced per month with the new budget. Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1,200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year's time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2? Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79. Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit